{"id":708918,"date":"2019-09-24T07:45:33","date_gmt":"2019-09-24T07:45:33","guid":{"rendered":"https:\/\/ghana-mma.com\/2019\/09\/24\/jospong-reacts-to-govts-illegal-takeover-of-gcdgl\/"},"modified":"2019-09-24T07:45:33","modified_gmt":"2019-09-24T07:45:33","slug":"jospong-reacts-to-govts-illegal-takeover-of-gcdgl","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2019\/09\/24\/jospong-reacts-to-govts-illegal-takeover-of-gcdgl\/","title":{"rendered":"JOSPONG reacts to govt’s illegal takeover of GCDGL"},"content":{"rendered":"

<\/p>\n

\n
\"\"<\/div>\n

The
\n management of JOSPONG Group of Companies has described government\u2019s
\nrecent takeover of the Great Consolidated Diamonds Ghana Limited (GCDGL)
\n over contract breaches as unlawful.<\/p>\n

According
\n to the company, the facts presented by government for the seizure are
\ninaccurate and a misrepresentation of the terms of the agreement
\nexecuted between the parties.<\/p>\n

In a statement copied to Adomonline.com, the company said \u201cThe action by SIGA [State Interest and Governance Authority] is illegal, unconstitutional and regrettable in a nation that is governed by the tenets of democracy.<\/p>\n

\u201cWe
\n emphasize our position that the conduct of SIGA amounts to total
\ndisregard for rule of law and good governance,\u201d the statement added.<\/p>\n

The
\n Acting Director-General of State Interest and Governance Authority,
\nStephen Asamoah Boateng led the takeover last week, renaming it Ghana
\nConsolidated Diamond Limited (GCDL).<\/p>\n

He
\n cited Clause (13) of the Mining Law as the authority which permits
\ngovernment to takeover a company that has failed to fulfill contract
\nobligations.<\/p>\n

But
\n the management of JOSPONG disagree. They said since their acquisition
\nof the \u201ccompletely run down\u201d mine, millions of dollars have been
\ninvested into to revive it.<\/p>\n

\u201cIn
\n the development plan to revive the mine to full-scale operations, we
\nhave undertaken numerous feasibility studies and development activities
\namounting to over 20 million USD. <\/p>\n

\u201cThe
\n GCDGL and its strategic partners have reached an advanced stage to
\nexecute a 50 million USD investment to operationalize the mine of which a
\n memorandum of understanding has been signed,\u201d the statement said.<\/p>\n

They
\n said government\u2019s conduct \u201ccreated pandemonium in the rather peaceful
\ncommunity and deprived the community of the very livelihood the facility
\n had given them over these few years. <\/p>\n

\u201cConsequently, the appointment of the Interim Management Committee by SIGA is void and has no legal basis.\u201d<\/p>\n

The company said since the matter is already before a court, they will await a final determination from there but assured its stakeholders \u201cincluding the chiefs and people of Akwatia and the workers that it is doing everything possible to resolve this matter using the appropriate legal remedies.<\/p>\n

Below is a full copy of the statement:<\/strong><\/p>\n

JOSPONG\u2019S RESPONSE TO GOVERNMENT\u2019S HOSTILE AND ILLEGAL TAKEOVER OF AKWATIA MINE.<\/strong><\/p>\n

The
\n attention of the management of the Jospong Group of Companies (JGC) has
\n been drawn to a publication by the Daily Graphic newspaper on Friday
\nSeptember 20, 2019 and also in other media platforms on the abrogation
\nof the Great Consolidated Diamonds Ghana Limited (GCDGL) contract by the
\n Divestiture Implementation Committee (DIC) due to the GCDGL\u2019s alleged
\ninability to meet the contract terms.<\/p>\n

We
\n wish to state that the facts contained in the publication are not
\naccurate and are a misrepresentation of the terms of the agreement
\nexecuted between the parties.<\/p>\n

Background <\/strong><\/p>\n

JGC
\n took ownership of GCDGL from government\u2019s Divestiture Implementation
\nCommittee (DIC) in the year 2011. At the time of acquisition, the
\ncompany had been closed down with its premises in a dilapidated state
\nwith obsolete machinery and equipment.\u00a0 <\/p>\n

Upon
\n the assumption of ownership of the mine in 2011, and immediately after
\nthe execution of the Agreement between DIC and GCDGL, substantial
\ninvestments were made in an attempt to revive the mine and make it
\ncommercially viable. Subsequently, GCDGL has also focused on meeting the
\n necessary regulatory, engineering and restructuring works necessary to
\nachieve this objective. We wish to state that
\nall due processes, guidelines and regulations provided by DIC to
\nregulate the said transaction were duly followed.<\/p>\n

Consequently, we hereby address the pertinent issues raised in the publication as follows:<\/p>\n

    \n
  1. Abrogation of contract by <\/strong>Government<\/strong>
    \n \u2013 Following the acquisition of the mine, GCDGL and the JGC have made
    \nseveral attempts to make the mine commercially viable, albeit not yet
    \nentirely successful. This led to series of communication with the DIC
    \nwith the aim of reaching a mutually satisfactory direction on how to
    \nproceed with same. <\/li>\n<\/ol>\n

    Despite these attempts, the Government acting through DIC by a letter dated 9th<\/sup>
    \n April 2019 purported to abrogate the agreement between the parties
    \nwithout following due process. GCDGL through their lawyers drew the
    \nattention of DIC\u2019s lawyers to the illegality of the intended action of
    \nthe DIC, and proceeded to issue a writ of Summons and an accompanying
    \nStatement of Claim to protect the interest of the company. It is
    \ntherefore unfortunate that Government, after filing a Statement of
    \nDefense in the aforementioned suit, proceeded to take over the
    \nmanagement of the company without recourse to the law and tenets of good
    \n governance.<\/p>\n

      \n
    1. Payment of Consideration- <\/strong><\/li>\n<\/ol>\n

      GCDGL, <\/strong>has
      \n since the acquisition made payments on account, and through its
      \nprincipal shareholder been in dialogue with Government with the aim of
      \nsettling the outstanding liability by way of a set-off from Government\u2019s
      \n liability to the shareholder. Government is yet to respond to this
      \nproposal despite repeated overtures.<\/p>\n

        \n
      1. Refurbishment of the Akwatia Mine and Hospital<\/strong><\/li>\n<\/ol>\n

        Management
        \n states that since the acquisition of the mine, millions of dollars have
        \n been invested into the mine which had been completely run down at the
        \ntime of acquisition. In the development plan to revive the mine to
        \nfull-scale operations, we have undertaken numerous feasibility studies
        \nand development activities amounting to over 20 million USD. The GCDGL
        \nand its strategic partners have reached an advanced stage to execute a
        \n50 million USD investment to operationalize the mine of which a
        \nmemorandum of understanding has been signed. \u00a0<\/p>\n

          \n
        1. Illegal and Hostile takeover of Mine<\/strong><\/li>\n<\/ol>\n

          The
          \n action by SIGA is illegal, unconstitutional and regrettable in a nation
          \n that is governed by the tenets of democracy. On Thursday 18th<\/sup>
          \n of September 2019, Executives of SIGA assisted by the BNI and military
          \napparatus illegally entered GCDGL premises, took over the security of
          \nthe mine, closed down all the offices, seized staff vehicles and mobile
          \nphones, threatened staff, and closed down the only hospital which serves
          \n the community without regard for the patients who were receiving
          \ntreatment. We wish to state that at all times, due notice was not served
          \n on the company.<\/p>\n

          Their
          \n conduct created pandemonium in the rather peaceful community and
          \ndeprived the community of the very livelihood the facility had given
          \nthem over these few years. Consequently, the appointment of the Interim
          \nManagement Committee by SIGA is void and has no legal basis. <\/p>\n

          We
          \n emphasize our position that the conduct of SIGA amounts to total
          \ndisregard for rule of law and good governance.\u00a0 As a responsible
          \ncompany, we reiterate the fact that the matter is presently before a
          \ncourt of competent jurisdiction and we will, therefore, wait for the
          \nfinal determination of the matter. <\/p>\n

          Management
          \n wishes to assure all its stakeholders including the chiefs and people
          \nof Akwatia and the workers that it is doing everything possible to
          \nresolve this matter using the appropriate legal remedies.<\/p>\n

          The Jospong Group of Companies currently employs over 50,000 people and remains committed to continued contribution to national development through the provision of jobs.<\/p>\n

          END<\/strong><\/p>\n

          COMMUNICATION DIRECTORATE, JOSPONG GROUP OF COMPANIE<\/strong>S<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

          The management of JOSPONG Group of Companies has described government\u2019s recent takeover of the Great Consolidated Diamonds Ghana Limited (GCDGL) over contract breaches as unlawful. According to the company, the facts presented by government for the seizure are inaccurate and a misrepresentation of the terms of the agreement executed between the parties. In a statement […]<\/p>\n","protected":false},"author":1,"featured_media":708867,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-708918","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"\nJOSPONG reacts to govt's illegal takeover of GCDGL - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2019\/09\/24\/jospong-reacts-to-govts-illegal-takeover-of-gcdgl\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"JOSPONG reacts to govt's illegal takeover of GCDGL - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"The management of JOSPONG Group of Companies has described government\u2019s recent takeover of the Great Consolidated Diamonds Ghana Limited (GCDGL) over contract breaches as unlawful. 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